Speaking at the German-Azerbaijani Strategic Partnership and Connectivity Conference in Baku, Deputy Minister of Digital Development and Transport Rashad Hasanov outlined major infrastructure and regulatory developments driving Azerbaijan’s transformation into a regional digital hub.
Sea-news.az reports the Deputy Minister stated that the 380-kilometer subsea fiber-optic cable linking Sumgayit and Aktau—the backbone of the “Digital Silk Way” project connecting Asia to Europe—reached the Kazakh coast in August and is scheduled for full operational launch by the end of 2026.
Strategic Initiatives & Innovation Ecosystem:
- AI Data Center in Alat FEZ: Final-stage negotiations are underway with international partners to construct an AI-dedicated data center in the Alat Free Economic Zone to serve the broader region.
- Human Capital & Dual-Degree Frameworks: The ASCON School of Engineering and Technology, established in partnership with Azerbaijan Technical University and Technical University of Munich, applies the German practical education model. Plans are in place to evolve the initiative into a dual-degree program.
- 20-Year Tax Exemptions (From 2027): Starting January 2027, companies operating in digital technology, AI, and cybersecurity will be exempt from corporate income and dividend taxes for up to 20 years. Relocating high-skilled professionals will enjoy income tax exemptions and a 20-year tax relief on foreign-earned income.
- Regulatory Modernization: Parliament has enacted a legislative package introducing frameworks for venture capital, crowdfunding, and streamlined tax and migration rules.
“Geography granted us this transit corridor. The Middle Corridor will transport your goods, and the Digital Corridor will carry your data,” Hasanov emphasized.
